FIIs were net sellers of equity on Mon., Tue. and Wed. (Dec 30, 31 and Jan 1) but net buyers on Thu. and Fri. (Jan 2 and 3). Their total net buying was worth Rs 5.0 Billion. DIIs were net sellers of equity on Fri., but were net buyers during the other four days. Their total net buying was worth Rs 0.3 Billion - as per provisional figures.
Most of the automobile manufacturers - like Hyundai, Honda, Nissan, Toyota, Tata Motors - posted negative growth in sales in Dec '19. However, Maruti and M&M showed marginal positive growth - thanks to heavy discounts and a lower base effect. Two wheeler makers like Hero Moto, Bajaj Auto, TVS Motors and Royal Enfield also posted negative sales growth.
Foreign Direct Investment (FDI) into India during Apr-Sep '19 grew 15% to US $26 Billion against $22.7 Billion during Apr-Sep '18. Sectors which attracted maximum inflows included services, computer hardware and software, telecommunications and automobiles.
BSE Sensex index chart pattern
The daily bar chart pattern of Sensex has been in an up trend - marked by blue up trend line - since Sep 20 '19, after the Finance Minister announced a cut in corporate tax rates. The up trend is still intact, thanks to twin support from the rising 20 day EMA and the trend line.
Daily technical indicators are showing downward momentum. MACD has slipped below its signal line in bullish zone. ROC has crossed below its 10 day MA and dropped to its neutral zone. RSI and Slow stochastic are moving down after failing to re-enter their respective overbought zones.
FIIs indulged in year-end profit booking, but have resumed buying in the new year. Their buying support will be crucial if the index is to rally further. However, US-Iran conflict has led to sharp rises in the prices of oil and precious metals. That can trigger a sell-off in global stock markets.
The index is trading well above its rising 200 day EMA in a bull market. However, a correction may be just around the corner. Keep a close watch on the support level of 40000. If the index bounces up from there, the rally should resume. Otherwise, a fall to the 200 day EMA is possible.
NSE Nifty index chart pattern
The weekly bar chart pattern of Nifty has been trading within a large 'rising wedge' pattern for the past 15 weeks. Such a pattern has bearish implications - which means, the expected breakout from the pattern is downwards.
The index is trading well above its rising weekly EMAs in a long-term bull market. However, formation of a bearish pattern at an index top should be treated with caution and respect.
Weekly technical indicators are looking bullish and overbought. MACD is rising above its signal line and is at the edge of its overbought zone. ROC has crossed below its 10 week MA and is trying to re-enter its overbought zone. RSI has slipped down from its overbought zone. Slow stochastic is moving sideways well inside its overbought zone.
Nifty's TTM P/E has slipped down a bit to 28.44 but remains well above its long-term average in overbought zone. The breadth indicator NSE TRIN (not shown) is inside its oversold zone, hinting at some near-term index consolidation or correction.
Bottomline? Sensex and Nifty charts are consolidating after touching lifetime highs. Rising CPI inflation, poor GDP and IIP numbers, a crisis of confidence among consumers, nationwide protests against the Citizenship Amendment Act (CAA) and US-Iran conflict are not conducive to a soaring stock market. Book partial profits, or stay invested with trailing stop-losses.
Most of the automobile manufacturers - like Hyundai, Honda, Nissan, Toyota, Tata Motors - posted negative growth in sales in Dec '19. However, Maruti and M&M showed marginal positive growth - thanks to heavy discounts and a lower base effect. Two wheeler makers like Hero Moto, Bajaj Auto, TVS Motors and Royal Enfield also posted negative sales growth.
Foreign Direct Investment (FDI) into India during Apr-Sep '19 grew 15% to US $26 Billion against $22.7 Billion during Apr-Sep '18. Sectors which attracted maximum inflows included services, computer hardware and software, telecommunications and automobiles.
BSE Sensex index chart pattern
The daily bar chart pattern of Sensex has been in an up trend - marked by blue up trend line - since Sep 20 '19, after the Finance Minister announced a cut in corporate tax rates. The up trend is still intact, thanks to twin support from the rising 20 day EMA and the trend line.
Daily technical indicators are showing downward momentum. MACD has slipped below its signal line in bullish zone. ROC has crossed below its 10 day MA and dropped to its neutral zone. RSI and Slow stochastic are moving down after failing to re-enter their respective overbought zones.
FIIs indulged in year-end profit booking, but have resumed buying in the new year. Their buying support will be crucial if the index is to rally further. However, US-Iran conflict has led to sharp rises in the prices of oil and precious metals. That can trigger a sell-off in global stock markets.
The index is trading well above its rising 200 day EMA in a bull market. However, a correction may be just around the corner. Keep a close watch on the support level of 40000. If the index bounces up from there, the rally should resume. Otherwise, a fall to the 200 day EMA is possible.
NSE Nifty index chart pattern
The weekly bar chart pattern of Nifty has been trading within a large 'rising wedge' pattern for the past 15 weeks. Such a pattern has bearish implications - which means, the expected breakout from the pattern is downwards.
The index is trading well above its rising weekly EMAs in a long-term bull market. However, formation of a bearish pattern at an index top should be treated with caution and respect.
Weekly technical indicators are looking bullish and overbought. MACD is rising above its signal line and is at the edge of its overbought zone. ROC has crossed below its 10 week MA and is trying to re-enter its overbought zone. RSI has slipped down from its overbought zone. Slow stochastic is moving sideways well inside its overbought zone.
Nifty's TTM P/E has slipped down a bit to 28.44 but remains well above its long-term average in overbought zone. The breadth indicator NSE TRIN (not shown) is inside its oversold zone, hinting at some near-term index consolidation or correction.
Bottomline? Sensex and Nifty charts are consolidating after touching lifetime highs. Rising CPI inflation, poor GDP and IIP numbers, a crisis of confidence among consumers, nationwide protests against the Citizenship Amendment Act (CAA) and US-Iran conflict are not conducive to a soaring stock market. Book partial profits, or stay invested with trailing stop-losses.
No comments:
Post a Comment